New construction 4 plex built and sold Phoenix

[Rylan Lacey]

Hi Biggerpockets,

Just wanted to share a project that I recently completed/sold and go over some numbers about the project.

Bought the lot in 2019 for $58,000 in south Phoenix (7th street and dobbins) and put 50% down and borrowed the rest from a private lender

Built the 4 plex for $400k ($100k per unit)

Asked $750k on the sales price, got $800k with multiple offers in the first week

Each unit is 2 bed 1 bath, 750 sq ft and rents between $1,350-$1,450. Sold around a 6% cap rate so the buyer got a great deal on a new build with warranties and I made a profit I was happy with

I have an 18 unit project going in south Phoenix as well and will update on that project in the coming months.

[Rylan Lacey]

Originally posted by @Preetham Gowda:

Congratulations Ryan. The numbers and the property look great. Couple of quick questions  How did you fund the project? HM/self-funding/bank etc? Your overall construction costs came to about $135 per sqft? 

 I got the project funded with a hard money lender here in Arizona. My actual construction loan was $305,000 for the project plus $30,000 owed on the land, and then the lender allowed me to cash out refinance once the project was nearly complete with a total loan amount of $400,000. So cost per sq ft for underground/utilities, offsites, and buildings came to $102 per sq ft. Im able to get it cheap since im also a licensed GC. Due to increased costs due to covid however I’m right around $125 per sq ft for construction now on my other projects